With calls in political circles for an internet-only bank for vulnerable groups, attention is on whether a fourth such bank will emerge. Consortiums that previously failed to win licenses are preparing to try again.
According to the financial and political sectors on the 23rd, National Policy Committee member Shin Jang-sik of the Rebuilding Korea Party plans to hold a forum on the fourth internet-only bank as early as late March. The forum is expected to discuss the need for the fourth bank and the types of financial products to be launched.
Shin's office says the fourth bank should be established with the purpose of supplying funds to low-income people, unlike the three existing internet-only banks (Kakao, Toss, Kbank). President Lee Jae-myung's pledge is also a "mid-interest-rate loan-focused internet-only bank for vulnerable groups."
On the 5th, at a full meeting of the National Policy Committee, Shin asked Financial Services Commission Chairperson Lee Eog-weon whether to push again for the fourth internet-only bank. Lee answered, "We will assess the need."
SOHO Bank and Soso Bank, consortiums for the fourth internet-only bank, are preparing to make another bid. Because these consortiums were dissolved after failing to win preliminary approval in September last year, they will have to be reassembled from scratch. As a large capital increase is needed, participating companies must obtain new board approvals to join.
Korea Credit Data, the core of SOHO Bank, expects no major issues in re-forming the consortium. SOHO Bank had included Woori, Hana, NH NongHyup, BNK Busan Bank, OK Savings Bank and Woori Card. IT corporations such as LG CNS, T-Systems, and Megazone Cloud also participated.
Soso Bank is moving to increase consortium participants. Soso Bank is centered on the Korea Federation of Micro Enterprise (KFME), and a drawback cited is the absence of large financial institutions such as commercial banks. Soso Bank had included BNK Kyongnam Bank and The LEADCORP, SillaJen, and others. Recently, payment-settlement corporation NHN KCP joined as a major shareholder.
In September last year, the Financial Services Commission (FSC) denied preliminary approval to Soso Bank, Soso Bank, Podo Bank, and AMZ Bank, citing insufficient capital strength, among other reasons. It came six months after applications were received in March last year. Regarding claims that the fourth internet-only bank was rejected because it was a project pursued by the previous administration, the FSC said, "It is inappropriate to link the screening results to the launch of the new administration."